(Sunstar, Nov 2, 2006) NEGROS Occidental Governor Joseph Marañon lauded on Tuesday the recent signing of memorandum of agreement (MOA) on the $20 million ethanol project between the China CAMC Engineering Co. Limited and the Negros Southern Integrated Biofuels Company.

The project is expected to boost Negros economy once the plants are put up here, Marañon said.

The construction of these plants, however, will take at least two to four years from now, and will depend much on the sustainability of sugar production, he said.

Marañon said that while waiting for these ethanol plants to be operational, now is high time to push for the increased productivity of Negros soil through organic farming.

The reconditioning of soil through organic farming will ensure the increased production of sugar to meet the demands of ethanol plants, he said.

The ethanol project is a program of the Department of Energy under House Bill 5629 or the Biofuels Act.

The bill mandates, among others, the blending of gasoline with at least 10 percent ethanol.

Ethanol is basically produced form sugar cane.

As Negros is the "Sugarbowl of the Philippines," there are at least three ethanol plants to be constructed in Negros Occidental, one in San Carlos City which will reportedly start soon, and the others in Murcia town and Kabankalan City.

Once these plants become operational, the demand for sugar will increase and may affect the price of sugar in the market, Marañon said.

It is important that the law of supply and demand is observed to protect the sugar production and to avert any hike in sugar prices, he said.

The Biofuels bill has been approved already by the Congress and the Senate, but both houses will still meet this November for a conference committee to tackle the different provisions of the bill.

Bukidnon Representative Juan Miguel Zubiri said the bicameral committee will be convened to reconcile the provisions in making the internal rules of the bill because the Senate and the Congress have different versions of said bill.

The MOA signing for the ethanol project was held on Monday in Nanning, China with President Gloria Macapagal-Arroyo witnessing the event.

Source:Sunstar